U.S. Hotels Market Summary

The U.S. hotels market size was estimated at USD 263.21 billion in 2024 and is projected to grow at a CAGR of 7.1% from 2025 to 2030. The U.S. hotels market is highly dynamic and multifaceted, influenced by a combination of economic cycles, travel patterns, and consumer preferences. In the early 2000s, the sector benefitted from steady domestic and international travel demand. However, the 2008 financial crisis dealt a major blow, leading to declines in occupancy rates, average daily rates, and revenue per available room. In subsequent years, the industry rebounded as both business and leisure travel demand returned, further accelerated by a rise in international arrivals and domestic tourism activity.

According to data from the U.S. Travel Association in collaboration with Tourism Economics, the U.S. recorded 77.7 million international arrivals in 2024, marking a year-over-year increase of 17%. This growth not only underscores the resilience of the tourism sector but also surpasses pre-pandemic benchmarks, highlighting a strong recovery for inbound travel. Canada and Mexico emerged as the top source markets, reflecting their importance in driving international visitation, while other markets in Europe and Asia also showed a steady upward trend, contributing to the overall rise.

Key Market Trends & Insights

• The luxury and upscale segment accounted for approximately 61% of the U.S. hotels market in 2024, making it the dominant segment in the industry. This segment continues to evolve in response to shifting consumer expectations, with travelers increasingly seeking unique experiences, personalization, and sustainability within luxury stays. Upscale hotels are adapting by offering curated wellness programs, eco-friendly initiatives, and tailored hospitality services to differentiate themselves and capture the high-spending segment of travelers.
• Chain hotels represented around 70% of the total U.S. hotels market in 2024, reflecting their ability to adapt to regional nuances, deploy scalable strategies, and provide brand assurance to travelers. Large hotel chains like Hilton and Marriott use strategic models to expand, such as Hilton’s hub-and-spoke approach, which establishes flagship properties and supporting infrastructure before broadening presence in regional markets. Their ability to balance global consistency with localized offerings gives them a distinct competitive edge.
• The direct booking segment accounted for about 46% of the U.S. hotels market in 2024, reflecting the rising popularity of hotel-owned websites and mobile apps. Direct bookings provide hoteliers with more control over pricing, branding, loyalty program engagement, and access to valuable customer data, allowing for targeted marketing strategies. At the same time, bookings through marketplaces are projected to expand at a CAGR of 8.8% from 2025 to 2030. Marketplaces offer convenience by allowing travelers to compare prices, locations, and amenities quickly, which appeals to cost-sensitive and experience-driven consumers alike.

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Market Size & Forecast

• 2024 Market Size: USD 263.21 billion
• 2030 Projected Market Size: USD 395.69 billion
• CAGR (2025 - 2030): 7.1%

Key Companies & Market Share Insights

The competitive landscape of the U.S. hotels market is complex and highly fragmented, shaped by global chains, regional players, independent boutique hotels, and technology-driven entrants. Evolving consumer demands, digital innovations, and structural changes in branding, asset ownership, and distribution have made the market increasingly competitive. Major groups such as Marriott International, Hilton Worldwide, Hyatt Hotels Corporation, and IHG Hotels & Resorts continue to dominate the upper tier with expansive brand portfolios spanning luxury, midscale, and extended-stay formats. Their competitive advantage lies in loyalty ecosystems, centralized revenue management, corporate travel partnerships, and operational scale. For example, Marriott’s Bonvoy loyalty program, with over 180 million members worldwide, is a key driver of repeat business and customer retention across its diverse brand network.

Key Players

• Marriott International, Inc.
• Radisson Hotel Group
• Accor
• Rosewood Hotel Group
• Hilton Worldwide
• Hyatt Hotels Corporation
• Kimpton Hotels & Restaurants
• Belmond Management Limited
• Wyndham Hotel Group, LLC
• Ace Hotels

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Conclusion

The U.S. hotels market demonstrates strong resilience, supported by rising international arrivals, a robust luxury and upscale segment, and the expanding dominance of global hotel chains. Direct bookings are reshaping the digital landscape, while marketplaces continue to gain traction by offering transparency and convenience. Key players such as Marriott, Hilton, Hyatt, and IHG are leveraging loyalty programs, scale, and technological innovation to strengthen competitive advantages. With evolving consumer preferences emphasizing personalization, sustainability, and memorable experiences, the industry is expected to sustain strong growth through 2030, positioning itself as a vital contributor to the U.S. economy and global travel sector.